India to tap Amazon, Flipkart data directly in inflation revamp, roll out services index
1. India will gather price data from e-commerce giants, including Amazon. 2. This aims to enhance inflation metrics and reflect current consumption trends.
FAQ
Why Bullish?
The initiative by the Indian government to source data from AMZN indicates that they recognize the influence of e-commerce on consumer behavior and inflation. A more accurate inflation measure could enhance investor confidence in the growth potential of e-commerce companies like Amazon, especially in emerging markets like India.
How important is it?
The article highlights a governmental move that can significantly affect AMZN's operations in India, a crucial growth market. Direct involvement in inflation data sourcing can position AMZN favorably as it adapts to regulatory environments.
Why Long Term?
As India's economic data becomes more reliable, e-commerce growth could see sustained investment. Historical shifts towards more precise economic metrics, such as the launch of GST in India, often lead to increased market participation, benefiting companies like AMZN in the long haul.